Latest News on Housing Market: Not a Surpise August 26, 2009

The latest news on property data and Home Prices should not come as a surprise and we should not begin celebrating an end to the crisis. In our article Cyclical, Seasonal and Emotional, we discussed the three critical phases of real estate selling patterns that have attributed to the housing bust.

The latest news and public records indicate that these critical phases are performing to historical levels. That is, the summer seasonal market is showing a correction to the cyclical change that began in 2007. Now the million dollar question is, will the fall seasonal market (which affects Florida, Arizona and Nevada) continue to show recovery or will the markets pause until the next “Selling Season in 2010?”

Our report: Housing in Crisis(published in March 2009) addressed the broader issue of excess housing. Again, there is good news on this front. The excess housing is being absorbed at an annualized rate of about 1 million units. Having a glut of 5 million units at the end of 2008, this means we have another three to four years before the overall markets start to recover.

Housing Recovery is the focal point here. We predict that the Northeast will continue to show stability, with modest corrections in local markets from 3% to 5% through the end of 2010. The Midwest remains strong and will experience similar stability. In the five biggest areas where excess housing still dictates selling patterns, we are predicting that Arizona will recover sooner than sections of Florida and Vegas.

The latest news on the housing market is not a surpirse. Recovery and Stability are the focal points and we should start to see signs of this in the upcoming months.

No one should be surprised when the next Housing Index comes out in September which will show a further strengthening of the market and continued adjustment in housing values in an upward trend. Our report Median Sales Price published in March of 2009 indicated that the overall Median Sales Price would move upward to $215,000 to $220,000 by year end. The current median sale price as reported by the Commerce Department is a $210,000, an increase of over 5% from the low of $201,400 early this year.

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[…] been numerous, many having been characterized by gross mismanagement and some by criminality. Latest News on Housing Market: Not a Surpise – accuriz.wordpress.com 08/26/2009 The latest news on property data and Home Prices should […]

Depends on where you are, your housing needs and your motivation for the making the purcase but generally speaking, I recommend purchasing a house. Right now, condos are more difficult to finance and can also be difficult to sell, especially at a profit in this market. You also run the risk that monthly maintenence fees could rise faster than expected and increase your cost of ownership.

We are Realtors in the Phoenix Arizona and have been hit harder than most areas with foreclosures. It is difficult to find properties that are not lender owned (unless they are short sales which will soon be lender owned in most cases)
However, there is a silver lining in the market. Buyers are returning in large numbers and REO’s are selling in a few days with multiple offers being the norm. I too believe that a new wave of foreclosures is due soon but, at least here, the savvy buyers are ready, willing and able.
It is an exciting time to be a Realtor in the Valley of the Sun.